The biotech gala is usually an event at which market players are able to find many long- and short-term trading and investment ideas, he said. It sets the agenda for the year and tells investors how Wall Street is going to approach a sector.

Cramer believes that 2007 should be a good year for biotech. His top pick going into and coming out of the conference is Gilead. While it is not Cramer's biotech play of the year, he believes that people should own it now, ahead of this conference.

Not only does Gilead have a "great pipeline," but it also has the "best portfolio of HIV drugs on the market," he said. But the Street is taking a cautionary approach toward the company because investors are nervous about the fact that Gilead recently bought Myogen, Cramer said.

"They are not comfortable with the matchup."

However, he believes that this nervousness doesn't really make sense and is attributable to investors' not really understanding the acquisition. When Gilead bought Myogen, it made the company difficult to understand, Cramer explained.

At JP Morgan's conference, money managers should hear the reassuring words they need to hear about the merger, he said. After this handholding takes place at the conference, investors will likely jump on Gilead's bandwagon, Cramer said.